Blog outlining massive fraud in the Australian listed investment company (LIC) and broader financial sector

Thursday, 18 July 2013

Macquarie and the Aurora price-fix

Macquarie, Perpetual and Suncorp currently control VBP's share price. These three institutions own 95% of outstanding shares of this very illiquid 'asset'. VBP is a vehicle of securities fraud, as the cartel keeps the share price at a level far above its true market value. As per usual, ASIC cooperates by pretending that VBP trades at a 'market' price and not an oligopoly price. Some of the same players are involved with price-fixing other companies associated with Aurora, such as for example LTN.

According to its annual reports, VBP burns all its operating income on management costs, and then resorts to various accounting tricks - including the perennial unrealized profit - to fake performance. VBP precedes its annual report with the farcical caveat that the "method of valuation" used can have "significant impact". Well OK then.Between June 21 and June 30, ASIC showed its awesome powers of enforcement, effecting a magnificent improvement to transparency. Instead of reporting "final unaudited Net Tangible Asset Value", VBP now reports "final unaudited estimated Net Tangible Asset Value". Behold the difference!http://asx.com.au/asxpdf/20130702/pdf/42gt7613sm363q.pdfhttp://asx.com.au/asxpdf/20130715/pdf/42h1g1t7kmwskh.pdf

This obviously solves everything, since VBP now includes the word estimated in its disclosure documents, and in bold-text no less.